Dixie Sales Up 8.9%, Earnings Down
Chattanooga, TN, Feb. 20, 2013 -- The Dixie Group reported a fourth quarter net loss of $415,000 or $0.03 per share, compared to a loss a year ago of $361,000 or $0.03 per share.
However, the company reported fourth quarter sales of sales of $71.1 million, ahead of last year's fourth quarter sales of $65.3 million.
“The year of 2012 was a year of changes," said CEO Daniel Frierson.
Frierson said the company should be helped this year from increased home building and an improving commercial market.
“Our fourth quarter sales were up 8.9% or approximately three times industry growth for the period," Frierson said.
"Of particular note, we had growth in both our residential and commercial product categories that exceeded industry growth. We had particularly strong sales in our wool and rug product segments. Our fourth quarter profitability was negatively impacted due to higher investments in new products, and acquisition and integration expenses associated with our Colormaster dyeing facility; however, we believe that these investments will continue our above-industry average sales growth into 2013."
For the year Dixie said its residential sales grew 4.3% while industry results were slightly positive. However, commercial sales were down, compared to single-digit growth in the industry.